iPhone 18 Pro Costing Apple 38% More to Make, TrendForce Estimates
Apple's iPhone 18 Pro will cost nearly 40 percent more to build than its predecessor because of soaring memory prices, according to new data analyzed TrendForce . The research firm's latest smartphone analysis puts the bill of materials for the 256GB iPhone 18 Pro roughly 38 percent above the equivalent iPhone 17 Pro, and says higher retail prices will be unavoidable as a result. Memory is said…
Apple's upcoming iPhone 18 Pro is anticipated to incur nearly 40% higher manufacturing costs compared to its predecessor, according to a new analysis by TrendForce, a leading research firm specializing in semiconductor and device industry trends. The primary driver behind this cost increase is the sharp rise in memory prices, which have surged five- to sevenfold since the beginning of 2025.
TrendForce's latest report indicates that the 256GB iPhone 18 Pro's bill of materials will be approximately 38% higher than that of the iPhone 17 Pro. Memory costs, which accounted for about 10% of the 256GB iPhone Pro's component cost a year ago, are now projected to constitute roughly 34% of the total bill in the third quarter of 2026 and surpass 40% by the first half of 2027.
This trend is expected to significantly impact other components, with panel and application processor costs dropping to single-digit percentages as memory takes up a larger share of the overall cost.
In response to these rising costs, Apple may adopt a strategy similar to its recent MacBook launches, where it deliberately sacrifices a portion of its gross margin to maintain customer-friendly pricing and safeguard shipment volumes. Additionally, Apple could raise prices on older iPhone models simultaneously with the launch of the new lineup to spread the cost recovery across the entire product range.
TrendForce further suggests that Android vendors in the entry-level and mid-range segments might face steeper price increases compared to Apple, or they could even discontinue certain product lines. Apple raised prices across various product categories, including Mac, iPad, Apple TV, HomePod, and Vision Pro, in June, driven by concerns surrounding the same memory shortage.
While the iPhone lineup was not affected by these price hikes, the trend appears to be escalating, raising doubts about the iPhone 18 Pro's ability to avoid similar cost pressures in the future. Apple is expected to unveil the iPhone 18 Pro, iPhone 18 Pro Max, and its first foldable iPhone Ultra later next month.
Written by urgent.news from MacRumors's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
